SINGAPORE: The Monetary Authority of Singapore (MAS) will make one other “pre-emptive adjustment” in its monetary policy stance amid an extra upward shift in Singapore’s inflation outlook, the central financial institution mentioned on Tuesday (Jan 25).
It will “slightly” elevate the fee of appreciation of its monetary policy band given the risks of upper core inflation in the close to time period. There shall be no change to the width and the extent at which the Singapore greenback’s nominal efficient change fee (S$NEER) policy band is centred.
“This move builds on the pre-emptive shift to an appreciating stance in October 2021 and is appropriate for ensuring medium-term price stability,” mentioned MAS.
MAS manages monetary policy by means of change fee settings, reasonably than rates of interest, letting the Singapore greenback rise or fall in opposition to the currencies of its foremost buying and selling companions inside an undisclosed band.
It adjusts its policy by way of three levers: The slope, mid-point and width of the policy band, often known as the S$NEER.